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Canada's economy grows slightly
OTTAWA, Led by the oil and gas extraction sector, Canada's economy grew 0.1 percent in May, slightly less than expected, Statistics Canada said.
Most economists expected growth of 0.1 to 0.2 percent for the month, the Financial Post reported Friday.
"Goods-producing industries rose 0.6 per cent, led by oil and gas
extraction," the federal agency said. "Construction and utilities fell back, while manufacturing activity edged up."
Canada's initial strong recovery from its recession is beginning to slow, the Post said.
The gross national product expanded by 4.9 percent in the fourth quarter of 2009 followed by a 6.1 percent increase in the first three months of this year.
Monthly numbers have weakened since then, the Post said with 0.6 percent growth in March and a flat reading in April.
David Tulk, a senior strategist at TD Securities, said Friday's report "confirms the deceleration in overall economic activity observed across a wide range of indicators."
"This was expected, as the stimulus-infused pace set through the first quarter of the year was clearly unsustainable," Tulk said. "What matters for the balance of the year and for the outlook for monetary policy is the level at which the economy stabilizes."
OTTAWA, Led by the oil and gas extraction sector, Canada's economy grew 0.1 percent in May, slightly less than expected, Statistics Canada said.
Most economists expected growth of 0.1 to 0.2 percent for the month, the Financial Post reported Friday.
"Goods-producing industries rose 0.6 per cent, led by oil and gas
extraction," the federal agency said. "Construction and utilities fell back, while manufacturing activity edged up."
Canada's initial strong recovery from its recession is beginning to slow, the Post said.
The gross national product expanded by 4.9 percent in the fourth quarter of 2009 followed by a 6.1 percent increase in the first three months of this year.
Monthly numbers have weakened since then, the Post said with 0.6 percent growth in March and a flat reading in April.
David Tulk, a senior strategist at TD Securities, said Friday's report "confirms the deceleration in overall economic activity observed across a wide range of indicators."
"This was expected, as the stimulus-infused pace set through the first quarter of the year was clearly unsustainable," Tulk said. "What matters for the balance of the year and for the outlook for monetary policy is the level at which the economy stabilizes."
